Correlation Between IShares MSCI and CHIS
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and CHIS at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining IShares MSCI and CHIS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI Hong and CHIS, you can compare the effects of market volatilities on IShares MSCI and CHIS and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in IShares MSCI with a short position of CHIS. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and CHIS.
Diversification Opportunities for IShares MSCI and CHIS
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IShares and CHIS is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Hong and CHIS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHIS and IShares MSCI is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on iShares MSCI Hong are associated (or correlated) with CHIS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHIS has no effect on the direction of IShares MSCI i.e., IShares MSCI and CHIS go up and down completely randomly.
Pair Corralation between IShares MSCI and CHIS
If you would invest 1,981 in CHIS on September 1, 2024 and sell it today you would earn a total of 0.00 from holding CHIS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
iShares MSCI Hong vs. CHIS
Performance |
| Timeline |
| iShares MSCI Hong |
| CHIS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IShares MSCI and CHIS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and CHIS
The main advantage of trading using opposite IShares MSCI and CHIS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, CHIS can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CHIS will offset losses from the drop in CHIS's long position.| IShares MSCI vs. iShares MSCI Singapore | IShares MSCI vs. iShares MSCI Taiwan | IShares MSCI vs. iShares MSCI Malaysia | IShares MSCI vs. iShares MSCI Australia |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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